A MERRY CHRISTMAS TO SOCIAL SECURITY – KISS YOUR MONEY AND SAY GOODBYE
This Holiday Season, I wish to greet Social Security a Merry Christmas, and give her a KISS and say GOODBYE.
I am inspired by a thought shared by Jesus as mentioned in the Gospel According to Saint LUKE, Chapter 6, verses 34 and 35. I cannot find Peace by expecting Social Security to repay my Earning Credits and grant me my monthly Retirement Income Benefit.
The term ‘TAX’ describes a compulsory payment, usually a percentage, levied on income for the support of Government. Tax is a special assessment and Tax demands or imposes a requirement to pay a percentage of income. However, the Social Security Tax is imposed by act of US Congress known as Federal Insurance Contributions Act or FICA. The term ‘CONTRIBUTION’ causes confusion as most people tend to think of ‘Contribution’ as the act of contributing something such as money given to a charity. FICA demands and imposes a Special Levy called Social Security Tax to give or provide jointly with others to finance a common fund. If Social Security is viewed as a Tax and not as Contribution to a Public Trust Fund, it will be easy to tell Social Security, “Let Us Just Kiss and Say Goodbye.”
Ann Arbor, MI 48104-4162 USA
SPECIAL FRONTIER FORCE
FEDERAL INSURANCE CONTRIBUTIONS ACT(FICA) DEFINITION – INVESTOPEDIA
DEFINITION of ‘Federal Insurance Contributions Act – FICA’
A U.S. law requiring a deduction from paychecks and income that goes toward
the Social Security program and Medicare. Both employees and employers are
responsible for sharing the FICA payments.
BREAKING DOWN ‘Federal Insurance Contributions Act – FICA’
FICA stipulates that there is a maximum that can be allocated to Social
Security, while there is no maximum on what can go toward Medicare. Once the
maximum to Social Security is achieved, the contributor’s FICA payment will
not increase the Social Security portion but will continue to increase the
contribution to Medicare. The amount of the FICA payment depends on the
income of the contributor; the higher the income, the higher the FICA
If FICA states, for example, that 12.4% of your salary goes toward Social
Security and 2.9% goes toward Medicare, half of the payment is made by you
and the other half by your employer. This means you pay 7.65% (6.2% and
1.45%) of your income, while your employer pays the other 7.65%.
Self-employed people, on the other hand, must pay the full amount, but
half – which would represent the employer’s half – is a deductible business